DBRS Publishes Updated Criteria on Rating Canadian ABCP

DBRS has today published an updated version of its methodology for rating Canadian asset-backed commercial paper (ABCP), which supersedes the version dated September 2009. The publication of this updated methodology is part of DBRS’s continued effort to provide market participants with better insight into the rationale behind DBRS’s rating opinions by outlining the significant elements DBRS expects to see in Canadian structured finance structures and transactions backing Canadian ABCP rated R-1(high) (sf).

Changes to the methodology are mostly editorial in nature and intended to provide further clarity and increased transparency into DBRS’s approach to rating Canadian ABCP. The updated version has also consolidated the following related criteria pieces in this single methodology:

(a) The DBRS Conduit New Sponsorship Criteria
(b) The DBRS Approach to Global Liquidity Standard
(c) The DBRS Approach to Rating Canadian ABCP Supported by PWCE
(d) The DBRS Approach to Rating Canadian ABCP Supported by Enhanced Liquidity
(e) The DBRS Approach to Rating Canadian ABCP Supported by Full Wrap Liquidity

DBRS does not view the updates to the methodology as significant and has determined that no rating action is warranted upon the release of this updated methodology.